HOUSTON BUSINESS REVIEW

COST-EFFECTIVE IT: Getting the Right Hardware and Software
By Richard Sonnier

Houston Business Show Commentator Richard Sonnier, of the Information Technology Services firm Nimble Services, provides weekly information on our show about information technology issues. Mr. Sonnier can be reached at 281.445.4800 x 250 or via email.

Last time, I explained how to target your system design to the business process. This week I will discuss getting the right hardware and software. This is the third step of saving money with IT.

Beyond the System Design

The system design determines what the hardware and software must do. However, we don't want just any components. We want the sweet spot of maximum value for our business. When purchasing IT components we want to consider:

1. Cost
2. Potential lifespan
3. Flexibility
4. Maintenance
5. Reuse

Cost

We are automating a business process to save money. The IT components to build the automation cannot cost more than the potential savings. The operational savings should repay the cost in 2 or 3 years.

Lifespan

How long will the IT components last? Some systems last over 10 years and some only 3. Components with longer lifespans save us more money so we can afford to spend more on them.

Flexibility

Will we grow over the lifespan of the components? If we have to upgrade in the middle of our cost recovery, then we will have wasted part of our initial investment. On the other hand, buying the biggest, most expandable solution is wasteful if you never need to expand. You need to estimate your potential growth over the components' lifespan.

Maintenance

All hardware and software comes with yearly maintenance, and some vendors have cheap prices but expensive maintenance. You need to calculate your total cost of ownership over the projected lifespan: purchase price plus yearly maintenance.

Reuse

Can the component be reused after it is replaced in this system? You may be able to show that the components can be sold for some remaining value.

Considering these factors, you can get the IT components that do the job cost effectively. Next week, I will discuss implementing the automation system.